Ang’s San Miguel Global Light and Power Corp. nd Saavedra’s Citicore Renewable Energy Corp. (CREC) will form a joint venture for a new solar energy project in Barangay Lucanin, Mariveles, Bataan.
“The parties shall collaborate and cooperate in the financing, construction, ownership, operation, and maintenance of the plant through the subscription to a special purpose entity,” CREC said in a stock exchange filing on Monday.
Big picture
The plan is for CREC and San Miguel to each control 50 percent of the venture.
This will boost SMC’s efforts to diversify its portfolio toward cleaner power sources while CREC advances its goal to assemble 5,000 MW of renewable energy capacity by 2028.
Critical partner
The deal demonstrates the willingness of Philippine companies to grow via partnerships.
The Philippines is making a major shift toward renewable energy, aiming for 35 percent clean power by 2030 and 50 percent by 2040.
This is also important for CREC as it aims to invest P175 billion over the next five years. It recently raised P5.3 billion from an initial public offering and plans to issue green bonds, and tap bank loans to bankroll its project pipeline, its CEO Oliver Tan said last month.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
